Chapter 10 - Other mandatory information

Advertising and market research

During 2015–16, Defence conducted advertising for recruitment and other campaigns. Further information on those advertising campaigns is available in Table 10.3 and in reports on Australian Government advertising prepared by the Department of Finance. Those reports are available on the Department of Finance’s website, www.finance.gov.au.

Table 10.1 shows total advertising and market research expenditure by Defence during 2015–16. Table 10.2 shows Defence spending on advertising and market research by Service and Group.

Table 10.1: Total advertising and market research expenditure, by type of agency, 2015–16

Type

2015–16

Expenditure ($)

Advertising

20,166,599

Market research

1,913,142

Polling

–

Direct mail

–

Media advertising

48,615,062

Total

70,694,803

Note:

All figures are GST inclusive

Due to substantial changes to Defence’s program and organisational structures resulting from the implementation of the First Principles Review during the period, expenditure data is provided for 2015–16 only. Please see www.defence.gov.au/annualreports for data from previous years.

Table 10.2: Total advertising and market research expenditure, by Service and Group, 2015–16

Service or Group

2015–16

Expenditure ($)

Navy

23,014

Army

29,201

Air Force

225,454

Defence Executive Support 1

126,203

Vice Chief of the Defence Force Group

139,630

Joint Operations Command

–

Strategic Policy and Intelligence Group2

16,023

Chief Finance Officer Group

–

Chief Information Officer Group

183,762

Capability Acquisition and Sustainment Group3

62,808

Defence Science and Technology Group4

34,332

Estate and Infrastructure Group

160,166

Defence People Group

69,685,027

Total

70,694,803

Notes:

1. Defence Executive Support includes the functions and capabilities of the Associate Secretary. For the 2015–16 period, the Office of the Secretary and Chief of the Defence Force and the Defence Support and Reform Group were dissolved and their functions were consolidated into Defence Executive Support and across other Groups and Services.
2. The Strategic Policy and Intelligence Group was established on 8 February 2016 as a key recommendation of the First Principles Review.
3. The Capability Acquisition and Sustainment Group was established on 1 July 2015 as part of the First Principles Review.
4. Previously the Defence Science and Technology Organisation.

Note:

All figures are GST inclusive.

Table 10.3 provides details of payments of more than $12,700 (including GST) to persons or organisations for advertising campaigns and market research.

Table 10.3: Total advertising and market research expenditure, by Service or Group, and by type and company, 2015–16

Service or Group, type and company

Expenditure in 2015–16 ($)

Purpose

Air Force

Advertising

Dentsu Mitchell

55,173

Australian Air Force Cadets position recruitment, Townsville Air Show advertising, and flying schedule and base activities notifications

Defence Publishing Service

19,840

Combat Control recruitment

Media advertising

Last Minute Media

71,660

RAAF Museum advertising

Defence Executive Support

Advertising

Mitchell and Partners Australia

27,201

Advertising call for submissions regarding the inquiry into recognition for Far East prisoners of war killed while escaping or following recapture

ORIMA Research

24,644

Design and conduct customer satisfaction survey to optimise customer service delivery for the enterprise corporate and enabling services such as APS education and training; legal, audit and assurance; security; financial services and ICT

ORIMA Research

25,788

Design and conduct customer satisfaction survey to optimise customer service delivery for the enterprise corporate and enabling services such as APS education and training; legal, audit and assurance; security; financial services and ICT

Vice Chief of the Defence Force Group

Advertising

Mitchell Adcorp Alliance

17,452

Multiple public notices across Australia to advise the community of upcoming range noise due to military training or explosive ordnance activities

Cubic Promote

46,844

Promotional items for the Defence Work Experience Program

Strategic Policy and Intelligence Group

Advertising

Mitchell and Partners Australia

43,169

Geospatial intelligence analyst recruitment

Chief Information Officer Group

Advertising

Amortisation of Telstra prepayments

26,252

White Pages

Amortisation of Telstra prepayments

26,252

White Pages

Amortisation of Telstra prepayments

26,252

White Pages

Telstra

105,007

White Pages

Capability Acquisition and Sustainment Group

Advertising

Mitchell Adcorp Alliance

21,192

Non-ADF advertising costs for Government-directed recruitment of personnel for shipbuilding egy and project

Defence Science and Technology Group

Advertising

Royal Institution of Australia

13,200

Advertisement in the Ultimate Science Guide 2016 magazine

Estate and Infrastructure Group

Media advertising

Dentsu Mitchell Media Australia

160,166

Public notices providing information about activities on Defence sites

Defence People Group

Advertising

Havas Worldwide Australia

18,321,885

ADF recruitment advertising

Market research

GFK Australia Pty Ltd

152,200

Qualitative and quantitative research to maximise ADF recruitment targets

Hall & Partners Open Mind

1,278,260

Qualitative and quantitative research to maximise ADF recruitment targets

Horizon Research

354,390

Qualitative and quantitative research to maximise ADF recruitment targets

Media advertising

Dentsu Mitchell Media Australia

46,000,933

Planning and placement of campaign advertising, including dissemination and other fees

The determined fraud loss for 2013–14 was incorrectly reported as $1,770,422, as a case of $370,000 was incorrectly reported as a fraud loss. The correct determined fraud loss for the period was $1,400,422.

Page 184, Table A.3 (Contracts that do not include the ANAO access clause, 2014–15)

The contract with Day Hodge Associates Pty Ltd was incorrectly reported as being over $100,000 and was under that threshold.

The Defence Science and Technology Organisation reported advertising and market research expenditure of $23,068 for the 2013–14 period. This is the GST-exclusive amount. The correct GST-inclusive amount is $25,375.

The Chief Information Officer Group reported advertising and market research expenditure of $25,671 for the 2014–15 period. This figure included some payments that were incorrectly journalled for the period. The correct expenditure for the period is $21,973 (GST inclusive).

Notes:

1. Figures are GST exclusive.
2. As part of the First Principles Review implementation, the Defence Science and Technology Organisation was renamed the Defence Science and Technology Group from 1 July 2015.
3. Grants reported in 2014–15 as Defence Materiel Organisation (DMO) grants.
4. Total grants paid includes Defence and Capability Acquisition and Sustainment Group (formerly DMO) grants.
5. Discrepancies between totals and sums of components are due to rounding.

Payment of accounts

In 2015–16, Defence met 99.5 per cent of all payment transactions by their due date. This result is ahead of the 90 per cent government benchmark. The volume of payments through Defence Purchasing Cards and Travel Cards represented more than 89 per cent (2014–15, 79 per cent) of all payments, which continued to have a positive effect on the paid-by-due-date result (Table 10.5).

Table 10.5: Accounts paid by due date, 2013–14 to 2015–16

2013–14

2014–15

2015–16

Number of accounts paid

1,748,114

2,013,583

2,113,079

Accounts paid by due date

1,736,673

1,997,627

2,101,908

Percentage of accounts paid by due date

99.4

99.2

99.5

Tactical payment scheme

The tactical payment scheme was legislated on 1 July 2009, under sections 123H and 123J of the Defence Act 1903. The scheme was introduced in 2009–10 to provide a means for making expeditious non-liability payments resulting from military actions by deployed forces. This scheme is critical for maintaining local community support and thereby ensuring the safety of deployed forces.

In 2015–16, seven individual payments totalling $6,026 were made under the scheme. All seven payments were a consequence of minor damage to property from motor vehicles.